Form 4: Fair Isaac Executive Richard Deal Acquires 3,382 Performance Share Units

Executive Vice President Richard Deal of Fair Isaac Corporation was granted 3,382 performance share units based on the achievement of certain performance metrics.

Summary

• Richard Deal, an Executive Vice President at Fair Isaac Corporation (FICO), acquired 3,382 performance share units on November 14, 2024.
• These units were granted based on the achievement of certain performance metrics as determined by the Leadership Development and Compensation Committee.
• Each performance share unit represents the right to receive one share of Fair Isaac common stock, contingent upon continued employment.
• The units will vest in three equal annual installments starting on December 9, 2024, with one share delivered for each vested unit.
• The reporting person now beneficially owns 3,382 shares of common stock through these performance share units.

Sentiment

Score: 7

Explanation: The document reflects a positive event for the executive, indicating that performance goals were met. It is a routine filing and does not suggest any significant positive or negative sentiment for the company as a whole.

Positives

• The grant of performance share units to Richard Deal indicates that the company is meeting its performance goals.
• The vesting schedule provides an incentive for continued employment and performance.

Risks

• The value of the performance share units is tied to the price of Fair Isaac common stock, which can fluctuate.
• The units are contingent on continued employment, creating a risk of forfeiture if employment is terminated.

Future Outlook

The performance share units will vest over the next three years, contingent on continued employment.

Management Comments

• The Leadership Development and Compensation Committee determined that the reporting person earned the performance share units based on achievement of certain performance metrics.

Industry Context

The granting of performance share units is a common practice in corporate compensation to align executive interests with company performance and shareholder value.

Comparison to Industry Standards

• Performance-based equity compensation is a standard practice among publicly traded companies, particularly in the technology and financial services sectors, similar to companies like Equifax and TransUnion.
• The vesting schedule of three years is also a common practice to ensure long-term alignment of executive and company goals.
• The number of units granted is likely based on a combination of individual performance and company-wide metrics, which is consistent with industry norms.

Stakeholder Impact

• Shareholders may view this as a positive sign that the company is meeting its performance goals.
• Employees may see this as a positive sign of the company's commitment to rewarding performance.

Next Steps

• The performance share units will vest annually over the next three years.
• Shares will be delivered to the reporting person as the units vest.

Key Dates

Keywords

performance share units, executive compensation, stock grant, FICO, Fair Isaac Corporation, Richard Deal, vesting